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on Payment Systems and Financial Technology |
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Issue of 2022‒06‒13
27 papers chosen by |
| By: | Riccardo De Bonis (Bank of Italy); Giuseppe Ferrero (Bank of Italy) |
| Abstract: | The paper summarizes the debate about the proposed introduction of a Central Bank Digital Currency (CBDC). We place the CBDC in the wider context of the different types of money used in market economies. We explore the most important ideas on why economic agents use money, on the history of money and on the distinction between public and private money. We then discuss the digitalization of the payment system and the main characteristics of cryptoassets. We conclude the paper by explaining the reasons for introducing a CBDC as well as the associated risks. |
| Keywords: | central bank digital currency, history of money, payment system, digitalization, digital euro |
| JEL: | E42 E58 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_690_22&r= |
| By: | Ahnert, Toni; Hoffmann, Peter; Monnet, Cyril |
| Abstract: | We study a model of financial intermediation, payment choice, and privacy in the digital economy. Cash preserves anonymity but cannot be used for more efficient online transactions. By contrast, bank deposits can be used online but do not preserve anonymity. Banks use the information contained in deposit flows to extract rents from merchants in need of financing. Payment tokens issued by digital platforms allow merchants to hide from banks but enable platforms to stifle competition. An independent digital payment instrument (a CBDC) that allows agents to share their payment data with selected parties can overcome all frictions and achieves the efficient allocation. JEL Classification: D82, E42, E58, G21 |
| Keywords: | central bank digital currency, digital platforms, financial intermediation, payments, privacy |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20222662&r= |
| By: | Saddam Hussein (Pakistan Institute of Development Economics); Abdul Jalil (Pakistan Institute of Development Economics) |
| Abstract: | Digital currency is defined as any currency available exclusively in electronic form. For instance, you could go to an Auto Teller Machine (ATM) or a bank and turn an electronic record of your currency holdings into physical dollars. However, it never takes physical form. It always remains on a computer network and is exchanged via digital means. For example, instead of using physical Rupee notes, you would make purchases by transferring digital currency to retailers using your mobile device. Digital currency is the future because of faster payments, less expensive, smooth international transactions, efficiency, lesser corruption, and maximum financial inclusion. |
| Keywords: | Pakistan, Digital Currency, Ecosystem |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pid:kbrief:2022:62&r= |
| By: | Bert Van Roosebeke (International Association of Deposit Insurers); Ryan Defina (International Association of Deposit Insurers) |
| Abstract: | A growing number of central banks are considering the issuance of central bank digital currencies (CBDCs). Upon their introduction and depending on their exact design, CBDCs may have considerable consequences for deposit insurers as well. In the first of a set of papers, this Fintech Brief sets out four of the main motivations for issuing CBDCs. Acknowledging considerable divergences across jurisdictions, we find: CBDCs for the general public (“retail CBDCs†) would constitute a central bank liability and a form of digital cash. To the public, they would be an alternative to central bank issued cash and private money, such as bank deposits. A large and growing share of central banks are experimenting with retail CBDCs. Some 20% of central banks indicate that they are likely to issue a retail CBDC by 2026, 40% indicate this is “possible†. Short-term monetary policy considerations are unlikely to play a significant role in central banks’ motivation for CBDCs. Whereas central banks in emerging markets and developing economies note that CBDCs may contribute to promoting financial inclusion, in advanced economies, CBDCs are not the most straightforward instrument in doing so. The evolution of payments plays a pivotal role in developing CBDCs. Given the declining role of cash in some jurisdictions, CBDCs as a new form of central bank money may contribute to safeguarding trust in the public currency. However, the available CBDC amounts necessary for that purpose may cause conflicts with likely and financial-stability-related limits on the volume of CBDCs that individuals may hold. As CBDCs would offer an alternative payment solution, they would contribute to resilience in future payment markets that may be privately dominated. However, given their digital nature, CBDCs may well be subject to similar cybersecurity and other digital risks that apply to private payment systems. CBDCs may contribute to competition and efficiency in an otherwise oligopolistic market for payment services, dominated by BigTechs. While potentially challenging to implement, a regulatory or competition-law-based response may be possible and would be less intrusive than introducing a CBDC. Central banks face the risk of large-scale use by the public of private or public (i.e. CBDC) digital currencies, not denominated in the domestic currency. These currencies may play a decisive role in the economy, and if foreign-based, largely out of reach of domestic legislation. CBDCs and/or private payment solutions in the domestic currency may assist in mitigating this risk, given sufficient demand for these. |
| Keywords: | deposit insurance, bank resolution |
| JEL: | G21 G33 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:awl:finbri:5&r= |
| By: | Igor Makarov; Antoinette Schoar |
| Abstract: | The paper provides an overview of cryptocurrencies and decentralized finance. The discussion lays out potential benefits and challenges of the new system and presents a comparison to the traditional system of financial intermediation. Our analysis highlights that while the DeFi architecture might have the potential to reduce transaction costs, similar to the traditional financial system, there are several layers where rents can accumulate due to endogenous constraints to competition. We show that the permissionless and pseudonymous design of DeFi generates challenges for enforcing tax compliance, anti-money laundering laws, and preventing financial malfeasance. We highlight ways to regulate the DeFi system which would preserve a majority of benefits of the underlying blockchain architecture but support accountability and regulatory compliance. |
| JEL: | G1 G2 G20 G21 G23 G3 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30006&r= |
| By: | Ruth Cohen; Oz Shy; Joanna Stavins |
| Abstract: | The use of paper instruments—cash and checks—has been declining in the United States, and consumers have been gradually replacing paper with cards and electronic payments. Stavins (2021) examines the evolution of payments from paper to cards and electronic payments, while Shy (2020) shows the payments landscape across merchant types. This paper combines the cross-sectional analysis across merchants with the aggregate time series study to analyze the evolution of consumer payments by merchant type. Using data from a representative diary survey of US consumers collected annually over the past several years, we examine changes for each merchant type to assess which transactions shifted from paper to electronic payments and from in-person to remote transactions. We find that cash use declined faster than check use, in large part because transactions shifted from in person to remote. While the cash-use share of transactions dropped for almost all merchant types, changes in check use were much more heterogenous across merchants. COVID-19 accelerated the payments evolution away from cash for some merchant types, as their drop in cash payments was much larger during the pandemic than prior to it. Merchants whose transactions are typically conducted in person experienced the largest decline in cash payments during the pandemic. Regression results show that the probability of using either cash or checks declined significantly in 2019 and 2020, even after controlling for merchant types, the dollar value of transactions, and consumers’ socio-demographic attributes. |
| Keywords: | consumer payments; merchant category; cash; check; cards; electronic payments; COVID-19 |
| JEL: | D12 D14 E42 |
| Date: | 2022–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbwp:94224&r= |
| By: | Yann Balgobin (I3, une unité mixte de recherche CNRS (UMR 9217) - Institut interdisciplinaire de l’innovation - X - École polytechnique - Télécom ParisTech - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Antoine Dubus (ECARES - European Center for Advanced Research in Economics and Statistics - ULB - Université libre de Bruxelles) |
| Abstract: | We analyze the relation between mobile phone use - mobile Internet in particular - and employment, self-employment and job regularity in Uganda. We find no evidence of any positive impact of mobile Internet use on employment or job quality, suggesting that either respondents do not use mobile Internet for job search practices or as a job tool, or that these uses are ineffective. However, we find that the adoption and use of basic mobile phones are positively related to employment and job quality, and we argue that regulators should focus on promoting the affordability of basic phones and mobile airtime. |
| Date: | 2022–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03617001&r= |
| By: | Alhonita Yatie (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper studies the impact of fear, uncertainty and market volatility caused by the Ukraine-Russia war on crypto-assets returns (Bitcoin and Ethereum) and Gold returns. We use the searches on Wikipedia trends as proxies of uncertainty and fear and two volatility indices: S&P500 VIX and the Russian VIX (RVIX). The results show that Bitcoin, Ethereum and Gold failed as safe havens during this war. |
| Keywords: | H56,Safe haven,Gold,crypto-assets,Russia,Ukraine,G15 War,G12,G32 |
| Date: | 2022–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03617040&r= |
| By: | Adalid, Ramón; Álvarez-Blázquez, Álvaro; Assenmacher, Katrin; Burlon, Lorenzo; Dimou, Maria; López-Quiles, Carolina; Martín Fuentes, Natalia; Meller, Barbara; Muñoz, Manuel A.; Radulova, Petya; Rodriguez d’Acri, Costanza; Shakir, Tamarah; Šílová, Gabriela; Soons, Oscar; Veghazy, Alexia Ventula |
| Abstract: | In July 2021 the Eurosystem decided to launch the investigation phase of the digital euro project, which aims to provide euro area citizens with access to central bank money in an increasingly digitalised world. While a digital euro could offer a wide range of benefits, it could prompt changes in the demand for bank deposits and services from private financial entities (ECB, 2020a), with knock-on consequences for bank lending and resilience. By inducing bank disintermediation, a central bank digital currency, or CBDC, could in principle alter the transmission of monetary policy and impact financial stability. To prevent this risk, options to moderate CBDC take-up are being discussed widely.In view of the significant degree of uncertainty surrounding the design of a potential digital euro, its demand and the prevailing environment in which it would be introduced, this paper explores a set of analytical exercises that can offer insights into the consequences it could have for bank intermediation in the euro area.Based on assumptions about the degree of substitution between different forms of money in normal times, several take-up scenarios are calculated to illustrate how the potential demand for a digital euro might shape up. The paper then analyses the mechanisms through which commercial banks and the central bank could react to the introduction of a digital euro. Overall, effects on bank intermediation are found to vary across credit institutions in normal times and to be potentially larger in stressed times. Further, a potential digital euro’s capacity to alter system-wide bank run dynamics appears to depend on a few crucial factors, such as CBDC remuneration and usage limits. JEL Classification: E42, E51, G21 |
| Keywords: | bank intermediation, bank runs, CBDC, digital euro |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:2022293&r= |
| By: | Bert Van Roosebeke (International Association of Deposit Insurers); Ryan Defina (International Association of Deposit Insurers); Paul Manga (Kenya Deposit Insurance Corporation) |
| Abstract: | E-money is widespread in Kenya, especially through MPESA, a form of e-money stored on mobile phones and issued by Safaricom, a mobile network operator (MNO). Integration between the MPESA platform and the traditional banking system is increasing. Given the very high use-grade of MPESA throughout the population, it has reached critical importance in Kenya. In Kenya, e-money issuers must back their e-value with bank balances at commercial banks (float), through trust accounts. Deposit insurance does not cover a default of the e-money issuer. However, the Kenya Deposit Insurance Corporation aims at offering pass-through coverage in case of a default of the deposit-taking commercial bank holding the trust accounts. Pass-through coverage is confronted with a number of challenges, including regarding data on the identity of e-money users and their balances held. Also, the critical importance of MPESA raises questions as to how to deal with a potential default of the MNO and the role of deposit insurance in such a scenario. Looking forward, there is merit in further coordination amongst safety net participants as well as in the management of trust accounts and the strengthening of data-availability requirements to e-money issuers. |
| Keywords: | deposit insurance, bank resolution |
| JEL: | G21 G33 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:awl:finbri:6&r= |
| By: | Sharad Agarwal; Marie Vasek |
| Abstract: | Ponzi schemes that offer absurdly high rates of return by relying on more and more people paying into the scheme have been documented since at least the mid-1800s. Ponzi schemes have shifted online in the Internet age, and some are re-branded as HYIPs or High Yield Investment Programs. This paper focuses on understanding HYIPs' continuous presence and presents various possible reasons behind their existence in today's world. A look into the countries where these schemes purport to exist, we find that 62.89% of all collected HYIPs claim to be in the United Kingdom (UK), and a further 55.56% are officially registered in the UK as a 'limited company' with a registration number provided by the UK Companies House, a UK agency that registers companies. We investigate other factors influencing these schemes, including the HYIPs' social media platforms and payment processors. The lifetime of the HYIPs helps to understand the success/failure of the investment schemes and helps indicate the schemes that could attract more investors. Using Cox proportional regression analysis, we find that having a valid UK address significantly affects the lifetime of an HYIP. |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2205.08569&r= |
| By: | Patrick-Hervé Mbouombouo Mfossa (CCAM - Centre Congolais Allemand de Microfinance - UPC - Université protestante au Congo) |
| Abstract: | Relying on the 2017 Cameroon Finscope Consumer survey dataset, the goal of this working paper is to conceptualize households' adoption of financial resilience strategies to adverse shocks as a multi-step process and investigate the key factors that influence the transition from one step to another as well as the role of mobile money in each of these transitions |
| Abstract: | En s'appuyant sur les données de l'enquête Finscope 2017 auprès des consommateurs camerounais, l'objectif de ce document de travail est de conceptualiser l'adoption par les ménages de stratégies de résilience financière face à des chocs défavorables comme un processus à plusieurs étapes et d'étudier les facteurs clés qui influencent la transition d'une étape à l'autre ainsi que le rôle du mobile money dans chacune de ces transitions. |
| Keywords: | Multi-step process,Financial resilience strategies,Fiancial inclusion,Mobile money,Stratégies de résilience financière,Processus à plusieurs étapes,Inclusion financière |
| Date: | 2022–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03614064&r= |
| By: | Lorie Logan |
| Abstract: | Remarks at the New York Fed and Columbia SIPA Monetary Policy Implementation Workshop, New York City. |
| Keywords: | digital innovation in money; digital innovation in payments; digital currencies; stablecoins; central bank digital currencies (CBDCs); monetary policy implementation; central banks |
| Date: | 2022–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsp:94350&r= |
| By: | Michael Kitchner (SoDa Laboratories, Monash University); Nandini Anantharama (SoDa Laboratories, Monash University); Simon Angus (Department of Economics and SoDa Laboratories, Monash University); Paul A. Raschky (Department of Economics and SoDa Laboratories, Monash University) |
| Abstract: | This paper proposes a new method to predict individual political ideology from digital footprints on one of the world's largest online discussion forum. We compiled a unique data set from the online discussion forum reddit that contains information on the political ideology of around 91,000 users as well as records of their comment frequency and the comments' text corpus in over 190,000 different subforums of interest. Applying a set of statistical learning approaches, we show that information about activity in non-political discussion forums alone, can very accurately predict a user's political ideology. Depending on the model, we are able to predict the economic dimension of ideology with an accuracy of up to 90.63% and the social dimension with and accuracy of up to 82.02%. In comparison, using the textual features from actual comments does not improve predictive accuracy. Our paper highlights the importance of revealed digital behaviour to complement stated preferences from digital communication when analysing human preferences and behaviour using online data. |
| Keywords: | data mining, political ideology, digital footprint, Reddit |
| JEL: | D72 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:ajr:sodwps:2022-01&r= |
| By: | Michael Kitchener (SoDa Laboratories, Monash University); Nandini Anantharama (SoDa Laboratories, Monash University); Simon D. Angus (Department of Economics and SoDa Laboratories, Monash University); Paul A. Raschky (Department of Economics and SoDa Laboratories, Monash University) |
| Abstract: | This paper proposes a new method to predict individual political ideology from digital footprints on one of the world's largest online discussion forum. We compiled a unique data set from the online discussion forum reddit that contains information on the political ideology of around 91,000 users as well as records of their comment frequency and the comments' text corpus in over 190,000 different subforums of interest. Applying a set of statistical learning approaches, we show that information about activity in non-political discussion forums alone, can very accurately predict a user's political ideology. Depending on the model, we are able to predict the economic dimension of ideology with an accuracy of up to 90.63\% and the social dimension with an accuracy of up to 83.09\%. In comparison, using the textual features from actual comments does not improve predictive accuracy. Our paper highlights the importance of revealed digital behaviour to complement stated preferences from digital communication when analysing human preferences and behaviour using online data. |
| Keywords: | data mining, political ideolog, digital footprint, Reddit |
| JEL: | A10 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2022-12&r= |
| By: | Todd Keister (Rutgers University); Cyril Monnet (University of Bern, Study Center Gerzensee, Swiss National Bank) |
| Abstract: | We study how the introduction of a central bank digital currency (CBDC) would affect the stability of the banking system. We present a model that captures a concern commonly raised in policy discussions: the option to hold CBDC can increase the in- centive for depositors to run on weak banks. Our model highlights two countervailing effects. First, banks do less maturity transformation when depositors have access to CBDC, which leaves them less exposed to depositor runs. Second, monitoring the flow of funds into CBDC allows policymakers to more quickly identify weak banks and take appropriate action, which also decreases the incentive for depositors to run. Our results suggest that a well-designed CBDC may decrease rather than increase financial fragility. |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:szg:worpap:2203&r= |
| By: | Chidera C. Ugwuanyi (University of Nigeria, Enugu, Nigeria); Chukwunonso Oraedu (Enugu, Nigeria); Chuka U. Ifediora (University of Nigeria, Enugu, Nigeria); Ernest E. Izogo (Ebonyi State University, Abakaliki, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon); Ikechukwu J. Attamah (University of Nigeria, Enugu, Nigeria) |
| Abstract: | Whilst self-service technologies (SSTs) are novel and evolving, they have rapidly grown popular across various retail service settings. Having been introduced into the Nigerian banking space, the level of customers’ satisfaction from the system is still unknown given that it has disrupted the initial service setup customers were used to. Utilising two theoretical perspectives, this study examined what drives customers’ satisfaction with banks’ SST and further assesses their influence on different marketing bottom lines. The study employed a quantitative approach to sampling 310 banks’ SST users within a popular university in Eastern Nigeria. Using the PLS-SEM technique, the study found that the perceived ease of use and perceived control are strong drivers of SST satisfaction and other marketing bottom lines. Surprisingly, perceived usefulness was found not to influence SST satisfaction, and therefore present a unique result in this context. Based on the foregoing, theoretical and managerial implications were provided. |
| Keywords: | Customer behaviour, Customer satisfaction, Technology Acceptance Model, Self-service technologies (SSTs), Stimulus-Response-Organism (S-O-R) Theory, Nigeria |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:22/025&r= |
| By: | Junius, Kerstin; Honkkila, Juha; Jonker, Nicole; Rusu, Codruta; Devigne, Lucas; Kajdi, László |
| Abstract: | The paper provides an overview of studies on the social and private costs of retail payments conducted since 2013 in nine EU countries and collates the results obtained. Social costs of retail payments are the overall costs resulting from providing payment services to society and deriving from the resource costs incurred by all parties along the payment chain. Private costs, in contrast, are the costs incurred by the individual stakeholder only, such as banks and other payment intermediaries. Understanding the social and private costs of retail payments is crucial for assessing the impact of the rapidly changing retail payment landscape, such as the shift to electronic payments, and for designing strategies for moving towards cost efficient retail payments. JEL Classification: D23, D24, O52, E42 |
| Keywords: | payment instruments, private costs, retail payments, social costs |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:2022294&r= |
| By: | Paola Crosetta (Financial Services Compensation Scheme) |
| Abstract: | The Financial Services Compensation Scheme (FSCS) is the UK’s statutory fund of last resort for customers of authorised financial services firms. It is an integrated compensation scheme covering not only deposits but also investment and insurance provision and intermediation, debt management, pensions, and home finance. FSCS is a statutory body created under the Financial Services and Markets Act 2000 (FSMA). FSCS does not provide coverage for electronic money (e-money). There is consumer protection for e-money and payment services via regulatory rules, but they are related to safeguarding requirements for customer funds. Any decision to extend FSCS coverage would be as a result of a legislative change and/or changes to regulatory rules and would be subject to public consultation. As of December 2020, there are around 1200 e-money and payments services firms operating in the UK. The growing presence of these players in the UK market brings challenges and opportunities for both consumers, who are increasingly dealing with these products, and regulators, as questions arise on how to best protect consumers if these providers, or the underlying institution holding the safeguarded funds, fail. |
| Keywords: | deposit insurance, bank resolution |
| JEL: | G21 G33 |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:awl:finbri:4&r= |
| By: | Elie Bouri (Adnan Kassar School of Business, Lebanese American University, Beirut, Lebanon); Afees A. Salisu (Centre for Econometrics & Applied Research, Ibadan, Nigeria; Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa) |
| Abstract: | Recent research suggests stronger ties between Bitcoin and US stock markets. In this paper, we examine the predictive power of Bitcoin prices for the realized volatility of the US stock market index and its various sectoral indices. Using data over the period 22 November 2017 and 30 December 2021, we conduct in-sample and out-of-sample analyses over multiple forecast horizons and evidence that Bitcoin prices contain significant predictive power for the volatility of US stocks. Specifically, an inverse relationship exists between Bitcoin prices and the realized volatility of US stock sector indices. The model that includes Bitcoin prices consistent outperforms the benchmark historical average model, irrespective of the various stock sectors and multiple of forecast horizons. The use of Bitcoin prices as a predictor yields higher economic gains. These findings highlight the power and utility of observing Bitcoin prices when forecasting the realized volatility of US stock sectors, which matter to practitioners, and academics, and policymakers. |
| Keywords: | Bitcoin prices, S&P 500 index, US stock sector indices, realized volatility prediction, economic gains |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202224&r= |
| By: | Mathéo Gilbert (CREOGN - Centre de recherche de l'École des officiers de la gendarmerie nationale) |
| Abstract: | Les difficultés au sein des chaînes logistiques sont, d'abord, celles de la multiplication des intermédiaires qui résultent, notamment, de l'allongement des distances à couvrir pour répondre aux besoins d'approvisionnement. Cela crée une croissance des éléments administratifs et du nombre de personnes concernées par l'activité. À cela s'ajoute la difficulté d'authentification des informations, des acteurs et des produits 1. On peut aussi noter les problématiques de traçabilité des matériaux lors de leur construction et de leur acheminement 2. Chacune de ces problématiques peut être résolue par la technologie blockchain, qu'il s'agisse de l'industrie agroalimentaire, de l'industrie aéronautique ou de celle de l'armement. Des entreprises l'utilisent d'ores et déjà 3. La blockchain permet la mise en place d'un processus de vérification et d'authentification des informations, ainsi qu'une traçabilité des éléments. De plus, la transparence d'une blockchain permet d'identifier la perte, le vol ou la fraude et, ainsi, de mieux sécuriser les matériaux. |
| Keywords: | mie,Microéconomie Indexation Libre,Logistique, Modèle économique, Transport Multimodal, Transport Ferroviaire, Plateforme Multimodale, Post-acheminement routier, Coût de revient du transport |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03634504&r= |
| By: | Wessel, Michael; Thies, Ferdinand; Benlian, Alexander |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:132588&r= |
| By: | Ofori, Isaac K.; Gbolonyo, Emmanuel; Dossou, Marcel A.; Nkrumah, Richard K. |
| Abstract: | The study employs macrodata on 42 African countries to examine whether remittances and financial development (including the sub-components of access, depth and efficiency) contribute to the equalisation of incomes across the continent. Robust evidence from the dynamic GMM estimator shows that: (i) remittances heighten income inequality in Africa, (ii) Africa’s financial system is not potent enough for repacking remittances towards the equalisation of incomes, and (iii) vis-à-vis financial access and depth, inefficiencies characterising Africa’s financial institution is the main reason remittances contribute to the widening of the income disparity gap. Nonetheless, the optimism which we provide by way of threshold analysis shows that channelling efforts into the development of Africa’s financial sector could yield shared income distribution dividends. In particular, efforts should be made to achieve a minimum of 23.05 per cent of financial access, and 3.02 per cent for that of efficiency of financial institutions if Africa’s financial sector is to repackage external finance towards the equalisation of incomes. A few policy recommendations are provided in the end. |
| Keywords: | Africa,Financial Development,Financial Sector Efficiency,Income Inequality,Remittances |
| JEL: | F22 F24 G21 I3 N37 O11 O55 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:253654&r= |
| By: | Gersbach, Hans; Zelzner, Sebastian |
| Abstract: | We provide a rationale for bank money creation in our current monetary system by investigating its merits over a system with banks as intermediaries of loanable funds. The latter system could result when CBDCs are introduced. In the loanable funds system, households limit banks' leverage ratios when providing deposits to make sure they have enough "skin in the game" to opt for loan monitoring. When there is unobservable heterogeneity among banks with regard to their (opportunity) costs from monitoring, aggregate lending to bank-dependent firms is inefficiently low. A monetary system with bank money creation alleviates this problem, as banks can initiate lending by creating bank deposits without relying on household funding. With a suitable regulatory leverage constraint, the gains from higher lending by banks with a high repayment pledgeability outweigh losses from banks which are less diligent in monitoring. Bank-risk assessments, combined with appropriate risksensitive capital requirements, can reduce or even eliminate such losses. |
| Keywords: | monetary system,banking,money creation,loanable funds,capitalrequirements,leverage constraint,asymmetric information,moral hazard,CBDC |
| JEL: | E42 E44 E51 G21 G28 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfswop:678&r= |
| By: | Calum Robertson (CEREGE - CEntre de REcherche en GEstion - EA 1722 - IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - Université de Poitiers - Université de Poitiers - ULR - La Rochelle Université); Sylvain Dejean (CEREGE - CEntre de REcherche en GEstion - EA 1722 - IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - Université de Poitiers - Université de Poitiers - ULR - La Rochelle Université); Raphaël Suire (Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université) |
| Abstract: | Short-term rental platforms, led by Airbnb, have disrupted the tourism accommodation industry over the last decade. This disruption has sometimes come along with unwanted long lasting effects on the urban dynamics of cities, and it has encouraged policy-makers to intervene. However, little is known about how effective such interventions are. This paper empirically evaluates the impact Bordeaux's regulation has had on STR activity through both a Differences-indifferences and a spatial discontinuity design. We find that regulation has had a reductive effect of over 316 rented days per month per district on average. This equates to over half of a preregulation standard deviation and 27 thousand nights spent per month in STRs across the city. However, the city's attempts to limit activity stemming from commercial listings yields mixed results as compliant homesharing listings also seem to have modified their behaviour. Additionally, analysis at the city border points towards the existence of potential spillover effects on the suburbs, further paving the way for discussion about the effectiveness of one-size-fits-all STR policy design. |
| Keywords: | Housing,Spatial Discontinuity,Tourism,Short-term rental,Airbnb,Regulation,Differences-indifferences |
| Date: | 2022–03–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03622113&r= |
| By: | Urom, Christian (Paris School of Business, Paris); Ndubuisi, Gideon (UNU-MERIT, Maastricht University, and German Development Institute, Bonn); Guesmi, Khaled (Paris School of Business, Paris) |
| Abstract: | This paper uses the Quantile Vector-Autoregressive (Q-VAR) connectedness technique to examine the return and volatility connectedness among NFTs and (un)conventional assets including cryptocurrency, energy, technology, equity, precious metals, and fixed income financial assets across three quantiles corresponding to the normal, bearish, and bullish market conditions. It also explores the predictive powers of major macroeconomic and geopolitical indicators on the return and volatility connectedness across these three market conditions using a linear regression model. The main findings are as follows. First, the return and volatility connectedness vary across the market conditions, with the levels during the bearish and bullish market conditions being higher. Second, except under the bullish market condition, the total return connectedness is higher than those of total volatility connectedness. Third, NFTs are, at best, decoupled from (un)conventional assets during the normal market condition. Fourth, NFTs is a net return shock receivers except under the bullish market condition where it is a net transmitters. However, it is a net volatility shock receiver irrespective of the market condition. Fifth, during periods of economic crisis the total return and volatility connectedness rise (decreases) under the normal and bearish (bullish) market conditions. Finally, geopolitical risks, business environment conditions, and market and economic policy uncertainty are important predictors of return and volatility connectedness, although the predictive strength and direction vary across market conditions. We discuss the implications of our findings. |
| Keywords: | Non-Fungible Tokens, Green energy, Grey energy, Spillovers, Quantile connectedness |
| JEL: | G12 G14 G40 C58 G11 |
| Date: | 2022–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2022017&r= |
| By: | Claire Borsenberger (Groupe La Poste); Helmuth Cremer (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Denis Joram (Groupe La Poste); Jean-Marie Lozachmeur (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CNRS - Centre National de la Recherche Scientifique); Estelle Malavolti-Grimal (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, ENAC - Ecole Nationale de l'Aviation Civile) |
| Abstract: | We study how consumers' environmental awareness (CEA) affects the design of environmental policy in the e-commerce sector. We also examine if there is a need for regulation requiring delivery operators to reveal their emissions. We consider a model with two retailers who sell a differentiated product and two parcel delivery operators. Delivery generates CO2 emissions and their total level creates a global (atmosphere) externality. We assume that it is more expensive for the delivery operator to use less polluting technologies. We consider different scenarios reflecting the type of competition and the vertical structure of the industry. We shown that CEA mitigates the inefficiency of the equilibrium by bringing the level of emissions closer to its optimal level. This is true under perfect and imperfect competition. This efficiency enhancing effect of CEA also affects the design of emissions taxes, which leads to an amended Pigouvian rule. Under perfect competition the tax is reduced by exactly the level of CEA expressed in monetary terms. Under imperfect competition the adjustment exceeds this level. |
| Keywords: | E-commerce,Emission taxes,Pigouvian rule,Consumers' environmental awareness,Vertical integration,Parcel delivery operators |
| Date: | 2022–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03613363&r= |